As a business owner, you may want to consider offering disability insurance to your employees, should they become ill and unable to work, due to a non-work related injury or illness. There are two types of disability insurance:

Short-term disability replaces a portion of your salary for a short period, such as three to six months following a disability. Benefits are typically 60% to 70% of salary and begin within two weeks of a disability. Short-term disability policies generally include specified normal maternity benefits. Long term disability, on the other hand, may only be available if there are extended complicaitons resulting from the maternity or delivery.

Some states require employers to carry disability insurance for their employees. Check with your state insurance department to find out whether you are required to provide disability insurance to your employees and if it must be a state specific policy.

According to the Small Business Administration (SBA), employers may specify a number of days of sick leave paid at 100 percent of salary. The employee can use these before short-term disability benefits begin.

Long-term disability coverage typically begins after the policyholder is disabled and unable to work for a period of one to serveral months. It can extend for a specified number of years or until the insured reaches age 65 or normal adjusted retirement age, depending on the policy selected.